So called "Lease to owns" out there, be careful.

With all the difficulty in getting a loan these days, I have a lot of buyers that are falling for the "lease" to own bologna. Now I know some of these are legit. I also know I have seen several houses rotate through several so called "lease" to own purchases with private parties, only to find out, when the option time is up, the house will not "appraise" therefore there is no way to "lease to own". Of course the owner of the home gets to keep the big down payment, and can then end the lease and collect on the next victim. What you need to find is a true "owner carry" and have a long term escrow set up with a note and deed. Payments made to the title company per the note, and taxes are paid by the buyer, and then the buyer enjoys all the benefits of owning a home. The seller is protected and can forclose in 120 days if default occurs, (and should be protected with a decent down) Then its just a matter of re-finance, not a purchase when the note is due. Usually based on 30 years amortization. If you need any help or have questions before you sign up for a killer deal on a lease to own, talk to me. I recently had a discussion with one of these so called "lease to own" owners, I'll call him Wing-nut, and it was clear he was up to no good. You see they get you signed up to buy an overpriced house they cant sell in hopes the market goes up, and THEY enjoy all the benefits of owning the home. Like the tax deductions, mortgage interest, and YOU pay it. Guess what can happen if the value goes up by chance higher than you agreed to?

How sad! I too watched a buyer get talked into moving out of her home during a short sale and putting all of her money in the down payment on a lease to buy deal. That was when the market was just beginning its decline. Thanks for your advice!

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